It feels like recently there has been a fresh wave of brands, from big-names to start-ups, being bought out by huge beauty conglomerates.
In the past year alone we have seen Estée Lauder Companies (ELC) buy Tom Ford Beauty for US$2.8bn, while Puig has acquired brands like Kama Ayurveda, Byredo and Loto del Sur, to name a few.
So, it is rare when you come across a brand that has an iron clad policy of ‘no, we will never sell to the beauty giants’.
Dr Hauschka has not bucked on this philosophy for 56 years, despite rumours of many larger beauty corporations wanting a slice of its natural skin care and make-up pie.
The German cosmetics brand operates in a foundation-owned model, which means it cannot ever be bought, sold or floated.
The brand’s foundation serves to protect the founders original purpose and help the company continue to fulfil its philanthropic mission.
Some may see this structure as a potential obstacle to growth, but Charles Beardsall, CEO of WALA UK, tells Cosmetics Business how the set-up has helped the brand cement its status.
Many beauty brands have been sold to the big conglomerates, what impact do you think this is having on the industry?
When beauty brands are bought out by big conglomerates then I think it is down to the consumer whether that company then stays because, at the end of the day, customers vote with their feet.
If product prices suddenly go up after a buy-out or the smell of a product changes due to reformulation, then if the brand does not do this in the right way then they will disappear, and that is a shame.
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